2024 Total Deliveries Announced

[Blue Lectroid]

These look good…

https://ir.lucidmotors.com/news-releases/news-release-details/lucid-announces-q4-production-deliveries-sets-date-fourth-0

 

[Cabonzhp]

Outselling production is always good. Demand, then Margin, then Rate

 

[yadaBaga]

When they say "...approximately 7% were subject to operating lease accounting", does that mean only 7% of vehicles delivered in the quarter were leased and rest were bought/financed? If so, I would have expected more leases given $7500 EV credit (and potential chance that it'll go away).

 

[Cabonzhp]

For some reason I attribute that to cars they use for marketing/demo and loaners and the such

 

[Buffalo Bob]

Not being an accountant, would someone please enlighten me about the statement that approximately 7% of the Q4 deliveries were subject to 'operating lease accounting'? Surely, well over 7% of Lucid's Q4 deliveries were leases. Is this something to do with the criterion that typical lease accounting requires the asset to be used for less than 75% of its useful life, and perhaps 7% exceed that range? Thanks.

 

[larrycpa]

Not being an accountant, would someone please enlighten me about the statement that approximately 7% of the Q4 deliveries were subject to 'operating lease accounting'? Surely, well over 7% of Lucid's Q4 deliveries were leases. Is this something to do with the criterion that typical lease accounting requires the asset to be used for less than 75% of its useful life, and perhaps 7% exceed that range? Thanks.

When we lease a Lucid, we lease it from Lucid Financing which is funded by B of A. Lucid books it as a sale. Any loss on the tail end will be booked at the time depending on the agreement they have with B of A. Expect to see some of those losses start to be reported as the leases come due.

 

[Lucken]

When we lease a Lucid, we lease it from Lucid Financing which is funded by B of A. Lucid books it as a sale. Any loss on the tail end will be booked at the time depending on the agreement they have with B of A. Expect to see some of those losses start to be reported as the leases come due.

Killjoy

 

[Buffalo Bob]

When we lease a Lucid, we lease it from Lucid Financing which is funded by B of A. Lucid books it as a sale. Any loss on the tail end will be booked at the time depending on the agreement they have with B of A. Expect to see some of those losses start to be reported as the leases come due.

Thanks!

 

[hmp10]

When we lease a Lucid, we lease it from Lucid Financing which is funded by B of A. Lucid books it as a sale. Any loss on the tail end will be booked at the time depending on the agreement they have with B of A. Expect to see some of those losses start to be reported as the leases come due.

Doesn't it depend on who holds the title to the vehicle during the lease term? If Lucid retains the title, they book the transaction under "operating lease accounting". Isn't it booked as a sale only if title passes to another entity?

 

[DeaneG]

We do need a corporate accountant to chime in. These 7% of vehicles subject to lease accounting could also be a company->employee car fleet. Maybe it'll be covered in the earnings call.

 

[illopp00]

Was that for the global deliveries? My understanding is that the growth in Germany is largely due to a rental fleet...

 

[larrycpa]

Doesn't it depend on who holds the title to the vehicle during the lease term? If Lucid retains the title, they book the transaction under "operating lease accounting". Isn't it booked as a sale only if title passes to another entity?

I believe that the title is held by Tryon Titling Trust

 

[hmp10]

I believe that the title is held by Tryon Titling Trust

So that means that Lucid is probably booking most leases as vehicle sales, and @DeaneG is probably right that the 7% of leases reported are cars that are in company fleets for various purposes.

 

[DeaneG]

Maybe they'll cover it in the earnings call. Anyway, a nice-looking Q4.

 

[tonybot]

More knowledgeable people can chime in and I am not an accountant. But operating lease accounting means Lucid retains ownership and those are not traditional leases. As others suggested, most likely demo vehicles, loaners, etc. Actual leases should be pretty high. For example, for Rivian, it was 42%.

https://www.barrons.com/articles/rivian-ev-stock-earnings-d47d9a1a

 

[Zinee]

I posted this chart in another thread. Through July 2024, 78.1% of Lucid transactions were leases. Other carmakers are seeing BEV lease rates above 90%.

 

[hmp10]

I posted this chart in another thread. Through July 2024, 78.1% of Lucid transactions were leases. Other carmakers are seeing BEV lease rates above 90%.

Interesting that Rvian and Tesla aren't on this list.

 

[xponents]

View attachment 25713

I posted this chart in another thread. Through July 2024, 78.1% of Lucid transactions were leases. Other carmakers are seeing BEV lease rates above 90%.

Wow... and this is even despite Lucid offering some insane lease deals! Then again, the leases on other luxury EVs are pretty "cheap," so maybe this was expected. Still, being on the level of some non-luxury EVs (which tend to have leases that arent as good) is insane.

Also, does anybody know what's going on with the VF8? I saw one a month ago, but why is it almost 99.5 percent leases?

 

[Pragmatic]

Slide 23 (linked presentation) seems to show that leasing was 23% of Tesla's financed vehicles in 3q24. Nothing on Rivian. Total leasing percentage would need to take into account cash sales so less than 23% were leased.

https://www.experian.com/content/dam/noindex/na/us/automotive/finance-trends/2024/experian-safm-q3-2024.pdf

 

[DeaneG]

...does anybody know what's going on with the VF8? I saw one a month ago, but why is it almost 99.5 percent leases?

Likely a combination of a attractive lease deals + concern about reliability/service after warranty expiration.
Vinfast has a terrible reputation in its home country, Vietnam, for reliability and difficulty in getting repair parts.